Work It Out, Chapter 19, Step 5

(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)

(Speaker)
The final step asks you to determine how Patty will respond to the new technology.

(Description)
The table from the previous slide is shown. The following text is written above the table: Now let's assume that Patty buys a new high-tech pizza oven that allows her workers to become twice as productive as before. That is, the first worker now produces 18 pizzas per hour instead of 9, and so on. The following text is written below the table: E. How does Patty respond to this increase in the productivity of her workspace?

(Speaker)
The new oven allows each worker to produce more pizza and provide a greater value to Patty. Because the value of the marginal product increases, Patty will now find it profitable to hire four workers instead of two. The fourth worker provides an additional value of 12 dollars and only costs patty a wage of 10 dollars.

(Description)
The fifth row of the table with the corresponding data is highlighted. It is labeled as The increase in productivity will cause MPL and the VMPL to double. In response Patty will now hire 4 workers.